DA Davidson Cuts Price Target on Commercial Metals (CMC) Following New Restructuring Plans
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Price: $71.63 --0%
Rating Summary:
13 Buy, 11 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 7 | Down: 11 | New: 19
Rating Summary:
13 Buy, 11 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 7 | Down: 11 | New: 19
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DA Davidson is reaffirming its Buy rating on shares of Commercial Metals Company (NYSE: CMC) while reducing its price target from $23 to $18.
Management has recently reported plans to sell or close its steel mill in Croatia and five fabricating facilities and eight construction service warehouse locations. The firm notes that operations at the Croatia mill have amounted to a loss of $32.6 million in the first nine months of 2011.
As a result of the company's new initiatives, the firm estimates pre-tax charges of $135-$165 million in 2011 and $25-$40 million in pre-tax charges for 2012. DA Davidson highlighted plans to change their estimates on the company's earnings following the release of their quarterly earnings on October 28.
An analyst at DA Davidson comments, "These actions by new management may also improve investor sentiment in the story, as the company is clearly taking more dramatic actions in an otherwise challenging environment in an effort to increase shareholder value."...."While economic concerns linger, we continue to believe these shares are attractive at current levels based on the opportunity for significant near-term improvement in profitability in ongoing businesses and longer-term earnings appeal."
For more ratings news on Commercial Metals Company click here and for the rating history of Commercial Metals Company click here.
Shares of Commercial Metals Company closed at $9.72 yesterday.
Management has recently reported plans to sell or close its steel mill in Croatia and five fabricating facilities and eight construction service warehouse locations. The firm notes that operations at the Croatia mill have amounted to a loss of $32.6 million in the first nine months of 2011.
As a result of the company's new initiatives, the firm estimates pre-tax charges of $135-$165 million in 2011 and $25-$40 million in pre-tax charges for 2012. DA Davidson highlighted plans to change their estimates on the company's earnings following the release of their quarterly earnings on October 28.
An analyst at DA Davidson comments, "These actions by new management may also improve investor sentiment in the story, as the company is clearly taking more dramatic actions in an otherwise challenging environment in an effort to increase shareholder value."...."While economic concerns linger, we continue to believe these shares are attractive at current levels based on the opportunity for significant near-term improvement in profitability in ongoing businesses and longer-term earnings appeal."
For more ratings news on Commercial Metals Company click here and for the rating history of Commercial Metals Company click here.
Shares of Commercial Metals Company closed at $9.72 yesterday.
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